The Feds are throwing the kitchen sink at the mix. That an we have a Fed chairman in Bernanke that is a scholar of the Great Depression. Now Congress has decided to help. We are truly fscked now. The Bear Sterns bail out was nothing more than trying to prevent a run on other financial institutions. And the other shoe has yet to drop on some very shaky hedge funds that Bear is on the hook for. So as tax payers we will be left holding the bag. And now we have Congress trying to exacerbate the problem by bailing out municipalities and stupid individuals with our tax dollars.<br><br>We have to let this thing hit bottom. There are going to be many "sucks to be you" situations that need to happen before our housing market can recover. <br><br>If nothing else, prosecute those lenders and brokers that misled their borrowers and let those that couldn't afford home ownership go back to renting. And those speculators that bought on slim margins in hopes of flipping for a profit, let them hang. "It sucks to be them" <br><br><br>Having big government try and bail this thing out is only going to prolong the pain. IMHO.<br><br>

Like I told matt once, the earth just tilted on its axis ~ I'm in complete agreement. <br><br>Actually, that was when he and I discovered we both really like curling, but still . . . <br><br><br><br><br><br><br>[color:white]xx</font color=white>[color:blue]I always deserve it. Really.</font color=blue><br><br>

Totally agree. I wouldn't have used the "sucks to be you" type language but to be truthful (and I really only am) the language fits. We sure haven't reached rock bottom and these band aids are just prolonging the misery. Rip the band aids off and let's see if we can move on.<br><br><blockquote><font size=1>In reply to:</font><hr><p>If nothing else, prosecute those lenders and brokers that misled their borrowers<p><hr></blockquote><p> Wishful thinking. I know you're showing your warm fuzzy side here and we appreciate it but those lenders and brokers are already gone. Prosecuting the wind in the willows would be as useful.<br><br><br><br><br><br>

Well one thing this illustrates is , you can rarely leave businesses to "police" themselves. Too many greedy SOBs out there... <br>anyone who proposes deregulation or no regulation ... look at this mess.<br><br>and this isn't the first of this Administration... remember Enron ?<br><br>David (OFI)

If we're gonna bail out these idiots, then they have to agree to real regulations just like the banks did after the Depression. Duh. Like that'll ever happen, at least in the prevailing atmosphere. On the other hand, if the gov just let's 'em drop like flies . . . yep. Works for me. Let 'em drop like flies.<br><br><br><br><br><br><br>[color:white]xx</font color=white>[color:blue]I always deserve it. Really.</font color=blue><br><br>

I spent the day in a board meeting with some financial dudes that are pretty heavy hitters in NYC that know alot more than me. I wasn't surprised by much that they had to say. But the gist was what I referenced earlier. They were very adamant however, concerning going after the bad apples. You said that they are likely gone. That may be true, but that is a remedy of the market correcting itself. The less than scrupulous are shod early on in a melt down. <br><br><br>

The problem isn't with what we know as traditional banking. I have banking friends that are weathering this storm quite well. There exists a shadow banking industry in the derivative and hedge fund markets that are so intricately complex that few understand them. The evolution of these markets didn't really get a head of steam until the last several years. Asset and mortgage backed securities sold as "bond funds" are a relatively new thing. The real problem exists in the valuation of these securities. No one seems to know what exposure to failure that there is in these markets. <br><br>

<blockquote><font size=1>In reply to:</font><hr><p>No one seems to know what exposure to failure that there is in these markets. <p><hr></blockquote><p> That is what really amazes me. Someone, maybe a half dozen people, deciding yes or no on a buy in on say a 40 billion dollar loan in an afternoon meeting and they have no clue how much risk is involved. That there is a real risk the 40 billion can turn into 40 million. Christmas bonus money is all that is left, in the blink of an eye.<br><br><br><br><br>

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